Mortgage Rates Remain Low After Decline
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline keeps rates favorable and just above historic lows. It's one of many current housing trends good for prospective home shoppers. Joel Kan, MBA's associate vice president and economic and industry forecasting, says improving inventory may be another. “Purchase applications were 7 percent higher than a year ago, which adds another solid data point to the recent increases in new home sales and housing starts,” Kan said. “There may be signs that housing inventory is starting to meaningfully rise, which will help with affordability and provide more choices for potential home buyers.” But though demand for loans to buy homes was up from the previous week, refinance activity fell. Still, refinance demand is currently 152 percent higher than last year at the same time. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.